LAKEPORT — The Lake County Board of Supervisors (BOS) Tuesday indicated reluctant support for an ordinance opting the county into the “Voluntary Alternative Redevelopment Program.”
The BOS discussed issues related to the status of redevelopment agencies (RDA) statewide during Tuesday”s regular meeting at the Lake County Courthouse.
Two recent pieces of state legislation affect the future of RDAs: one abolishes local RDAs effective Oct. 1 and the other allows redevelopment activities to continue if the local government participates in the alternative program.
In order to continue Lake County RDA activities, the BOS would have to approve an ordinance entering the county into the voluntary program, County Administrator Kelly Cox said.
“Right now the gun is being held to our head,” said Cox, who also serves as the county RDA executive director.
The program would allow the county to continue receiving property tax revenues for its RDA, but not all of the funds would end up going toward RDA activities.
Program participation would require the county to make payments from its general fund to schools and a Special District Allocation Fund, according to Cox. The county”s General Fund would then be reimbursed in full for those payments from the RDA tax revenues fund, he said.
For the current fiscal year, county staff estimates being required to pay about $1.035 million from the general fund to the schools and special district fund, under the program. That money would then be repaid to the general fund from the estimated $1.25 million in property tax revenues for the RDA.
The county would be required to pay smaller amounts to the schools and special district fund in future years.
Those transactions would not leave much money for RDA activities this year, but the program appears for the time being to be the only way for the county”s RDA to move forward with Northshore Project Area work, according to Cox.
“There is, in my opinion, no choice,” he told the BOS.
The Supervisors said they supported continuing RDA activities but wanted to let the state know they don”t appreciate being put into the position of having to join the alternative program.
Lake County RDA activities are currently frozen and the agency would be unable to enter into new contracts until the county”s participation in the program is effective, Cox said.
The BOS unanimously indicated support for the ordinance, voting to waive the reading of the entire proposed ordinance, having it read in title only, and advancing the second reading to the next regular meeting.
The BOS also directed staff to draft a letter to the state describing the some of the county”s concerns about the alternative program.
Cox pointed out that the California Redevelopment Association has stated an intent to file a lawsuit to get the new RDA legislation overturned. Potential litigation could affect the voluntary program as well as present more questions about the future of local RDAs, Cox said.
In other business, the BOS discussed ways to reduce the construction costs of the new Middletown Senior Center and Library project.
The low bid, submitted by R?E West Builders, Inc., was nearly $3.7 million, which exceeded the construction estimate of nearly $3.1 million.
R?E West agreed to hold the bid beyond the expiration period while the county decided whether to award the bid or develop reduction options.
Representatives of the Santa Rosa-based construction firm told the BOS Tuesday they thought plan modifications could be made to reduce construction costs, citing using less-expensive lighting fixtures as an example.
R?E West staff also said the company planned to have almost 43 percent of the project work performed by Lake County subcontractors.
County staff discussed other project options with the BOS, including a multi-prime approach in which the county would act as the general contractor and deal directly with the individual trade contractors.
While the multi-prime approach could provide the county with more control and flexibility, it could also put additional workloads on already undermanned departments, Cox said.
Cox suggested the county take additional time to discuss cost-saving options with R?E West rather than award the contract Tuesday. The county would like to see construction begin during 2011, as originally anticipated, he said.
The Supervisors agreed to allow staff more consultation time after R?E West representatives said the company would hold its bid for an additional two weeks. The BOS is scheduled to address the issue during its July 26 meeting.
The Supervisors also passed a trio of ordinances affecting county fees.
The Supervisors, sitting as members of the Lake County Sanitation District (LACOSAN) Board of Directors, approved an ordinance establishing a “System Capacity Fee” for new development for connections to the Northwest Regional Wastewater Collection System.
The one-time fee, in part, would recover the capital asset costs required for the system to serve new development, according to Special Districts Administrator Mark Dellinger.
The ordinance describes fees for connections to different types of new development. For example, the fee for a single-family residential unit would be $4,002.
The LACOSAN board also passed an ordinance to change the inflationary cost index used for a separate existing fee for new development connections to the northwest system.
The ordinance states annual inflationary adjustments for the “Capacity Expansion Fee” will be based on the Engineering News Record, Construction Cost Index rather than the Consumer Price Index.
Both changes to the northwest system have already been approved for the Southeast Regional Wastewater Collection System, according to Dellinger.
The third ordinance passed Tuesday amended the gate fees paid by Lakeport Disposal at the Eastlake Landfill.
Lakeport Disposal, which hauls waste for the city of Lakeport, will pay $38.25 per ton at the landfill during the current fiscal year, once the ordinance takes effect. The fee will increase by 6 percent in each of the following three years.
The Lakeport Disposal rate will be lower than the amount paid by the general public at the landfill but higher than the county”s two franchise haulers.
The new Lakeport Disposal gate fee, along with the changes to northwest wastewater system fees, will take effect in mid-August, 30 days after Tuesday”s passage.
In closed session, the BOS conducted interviews of candidates for director of the Lake County Public Services Department. Current Public Services Director, Kim Clymire, will be retiring on Oct. 3 after 30 years with the department, according to Cox.
The BOS appointed the department”s deputy director, Caroline Chavez, as Public Services Director effective Oct. 4.
Contact Jeremy Walsh at jwalsh@record-bee.com or call him at 263-5636, ext. 37.
